Wednesday, January 23, 2013

State income taxes to go down dramatically in Wisconsin... Quick! Name - That - Party??

Gov. Scott Walker and a top legislative leader have revealed the size of Republicans' long-discussed plan to cut the state income tax - at least $300 million over the next two years.

That would amount to a roughly 2% cut on the $15.26 billion in income taxes that the state is expected to take in over the two-year budget cycle. Walker said Tuesday that would amount to about a $200 cut over two years for the "typical state family," though he didn't specify how he was defining that.

Walker and other state GOP leaders have said for months that they want to cut income taxes to boost the state economy, but until recent days they had not provided precise details on how much it would affect the state budget. One economist questioned whether the cut would be enough to have a significant effect on the economy or jobs.

Continuing:

Like Walker, Assembly Speaker Robin Vos (R-Rochester) said Tuesday that the income tax cut would be at least $300 million to $350 million over the two years.

Gov. Scott Walker promised during his State of the State speech Tuesday to deliver a significant income tax cut for the middle class and to renew his focus on putting people back to work, saying he was “doubling down” on his campaign promise to create 250,000 jobs.

But the Republican governor, just seven months past his recall victory, said there are signs that the state’s economy is improving, including a drop in the unemployment rate.

“We are moving Wisconsin forward with bold vision and bright hope for the future,” Walker said.